powerfulpicks advice: Unbelievably high P/E, miniscule earnings, low book value of 1.7 does not justify the price of 38 and 12% gain today for Farmax India. Operator driven stock. You can also smell a rat by the fact they gave 2 stock splits in 2010, one after the other. Business is also not encouraging with a narrow product range. They just make oil cooled and air cooled voltage stabilizers.
In summary, avoid such stocks; when they fall, they will wipe out your entire investment, not only the profit part. Buy good quality companies with strong and increasing demand for their products.
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